Ethereum started a decent recovery wave above the $2,980 resistance. It is facing a strong resistance near $3,080 and $3,100, according to technical analysis by NewsBTC’s Aayush Jindal.
Ethereum Recovers Losses
Ethereum found major support around $2,880 in yesterday’s drop and started an upward move from there. There was a move above the $2,980 and $3,000 resistance levels. ETH is now trading above $3,000 and the 100 hourly simple moving average. A high was formed near $3,068 and the price is now consolidating gains and it is trading above the 23.6% Fib retracement level of the recent rise from the $2,880 low to $3,068 high. An initial resistance is seen near the $3,070 level.
There is also a key bearish trend line forming with resistance near $3,070 on the hourly chart of ETH/USD. The next major resistance is near the $3,080 and $3,100 levels.
A close above the $3,100 level could start a decent upside move in the short term. The next major resistance could be near $3,150 or $3,220.
Will Ethereum Fall Again?
Jindal says if Ethereum fails to gain momentum above the $3,100 level, it could start a downside correction. An initial support on the downside is near the $3,020 area and the 100 hourly simple moving average.
The next major support is near the $2,980 level. This is close to the 50% Fib retracement level of the recent rise from the $2,880 low to $3,068 high. If there is a downside break below the $2,980 support, the price could start another decline. In this scenario, there is a risk of a move towards the $2,880 level.
What Do Technical Indicators Say?
- Hourly MACD – The MACD for ETH/USD is now losing momentum in the bullish zone.
- Hourly RSI – The RSI for ETH/USD is now above the 50 level.
- Major Support Level – $2,980
- Major Resistance Level – $3,100
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